Refer to the information in QS 15-4. (1) After the fair value adjustment is made, prepare the

Question:

Refer to the information in QS 15-4.

(1) After the fair value adjustment is made, prepare the assets section of Kitty Company’s December 31 classified balance sheet.

(2) In which income statement section is the unrealized gain (or loss) on the portfolio of trading securities reported?

Data From QS 15-4

Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow. Prepare the journal entry to record the December 31 year-end fair value adjustment for these debt securities.